Micron stock was struggling again on Monday, and now probably isn't the time to buy the dip in the memory-chip maker as investors continue to worry about artificial-intelligence spending.
Shares of Micron declined 4.1% to $848.50 on Monday. They fell 2.1% last week, meaning they had fallen 17% over the past month through the close of trading Friday.
There wasn't an obvious catalyst dragging the stock lower, although disappointing earnings from Micron's Japanese rival Kioxia weren't helping.
The memory-chip maker's quarterly profit missed analysts' expectations, sparking a 16% slump in its shares.
It's tempting to see the recent selloff in Micron stock as a buying opportunity. It looks cheap, fetching just five times expected earnings for the current fiscal year -- not bad for a company with an 87% margin thanks to the AI data-center buildout driving up memory-chip demand.
But this probably isn't the right moment to bet on shares. Investors are still questioning if Big Tech companies such as Alphabet and Amazon will still want to pay for the AI buildout at a time when their legacy businesses are struggling.
The market also faces three major tests this week -- Apple earnings, the midterm elections, and Friday's jobs report. If it can clear those hurdles and the AI spending worries go away, then Micron may be worth buying again.
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